Heat in Buildings Development Funding

Support provided by Scottish Government

What does this involve?

This Scottish Government fund will support projects that have the potential to create low carbon heat solutions for buildings. It will focus support on the development of full investment-grade business cases, with the aim of helping projects become eligible for future capital support, or informing organisations’ internal investment decisions and their ability to secure other sources of capital investment and match-funding.

Development activities may include, but are not limited to:

  • developing a business case, including a strategic case, economic case, commercial case, financial case and management case
  • detailing a financial model, including tariff structures
  • analysis of market demand
  • valuations
  • financial options appraisal – providing support for investment options and propositions
  • project management support and services

Applications relating to zero emissions heat solutions across the following themes will be considered:

  • Theme 1 – the development of heat network projects
  • Theme 2 – zero or low emission heat projects
  • Theme 3 – heat networks and heat projects within the Clyde Mission area

The Scottish Government has targeted £1 million of development support for projects with viable feasibility studies.

Am I eligible?

Zero emission heat projects are eligible if they will be delivered in Scotland and have a project location, proof of technology concept and an end user for their output identified and secured when they apply.

The project proposal you submit should also:

  • demonstrate the proposal's contribution to zero emissions heat targets, including the potential to reduce greenhouse gas emissions (MtCO2e)
  • confirm other sources of funding or finance that make a minimum 50% contribution towards the development costs
  • show the project's potential to have a positive and significant impact on skills and the supply chain in Scotland
  • demonstrate the additionality of and need for grant support

What does this cost?

Development support of up to £50,000 is available to help projects complete an investment-grade business case and progress to capital readiness. Projects must provide a minimum of 50% match funding towards the costs of the business case.

Who is this for?

Zero emissions heat projects in Scotland.

How long does this take?

The key process dates are set out below and are applicable to all applicants.

  • Publication of invitation: 23 March 2022
  • Online information sessions: April 2022
  • Deadline for receipt of applications: 31 May 2022
  • Outcome: within four weeks of submission
  • Award: June 2022
  • Final completion of development work: November 2022

Applications for development support must be completed and submitted to heatnetworkfund@gov.scot by 5pm on 31 May 2022. No exception to submission dates can be negotiated.

Next steps

Visit the Scottish Government website for more information on the fund, including eligibility and how to apply.

Support provided by Scottish Government

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